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Personal Finance-Chapter 2 Flashcards | StudBud
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Personal Finance-Chapter 2
Personal Finance-Chapter 2
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Financial Plan
Flashcards
18 cards
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Practice quiz
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Questions
18
Answers
1
An example of an asset is
None of these.
Utilities Bill
School where I work
House
2
There are how many components of a financial plan?
9
5
3
7
3
Liabilities are
what we owe.
what we own.
4
"Rent" on money you borrow is
finances
assets
liabilities
Interest
5
Making a what is a basic part of personal financial planning?
net worth
budget
estimation
prediction
6
Payment terms include
only interest rate information
ones social security number
None of these
specific info about interest rates & time period of loan
7
Jax car is worth $5,000 & owes $1,500 on his loan. He has $500 in savings. What's his net worth
$3,000
$7,000
$3,500
$4,000
8
To find ones net worth do the following calculation:
Assets/Liabilities
Assets + Liabilities
Liabilities - Assets
Assets - Liabilities
9
4 steps of budgeting involve
net worth, expenses, equity, liabilities
net worth, income, expenses, taxes
liabilities, expenses, income, taxes
assets, liabilities, net worth, taxes
10
Component 1 of a financial plan is
Plan for your Financing
Plan for your budgeting & taxes
Manage Your Liquidity
Credit Management
11
Specifying financial goals & describing spending, financing, & investing needed to reach them
Net Equity
Goal Setting
Personal Financial Plan
Budget
12
Involves making decisions how much $ or liquid assets to keep in reserve & how much to invest
Credit Management
Money Management
13
Equity means
gross pay
net pay
ownership
liabilities
14
Component 2 of your financial plan is to
Manage your liquidity
Plan for your budgeting & taxes
Plan for managing your risk
None of these
15
Process of forecasting future expenses & income is
budgeting
credit management
planning
guessing
16
A plan for your investing is component # what on a financial plan?
4
3
6
5
17
Component #7 is what?
Plan for managing risk
Plan for ones retirement
Plan for communicating & keeping records
None of these
18
A plan for your financing is component #
1
5
2
3
